SMA 305-External & Internal Analysis of Woolworths – Management Assignment Help

Assignment Task


Analysis of Woolworths
Founded by Percey Christmas first in Sydney Australia December 5th, 1924, Woolworth’s core focus and business model was to create a convenient grocery store that sold all things needed for basic living. This still remains true after 98 years, because the original CEO’s vision for the company was “Every city needs a Woolworths” and that “Every man, woman and child, needs a handy place where good things are cheap.” (Woolworths Group n.d.) and to this day, Woolworths is one of the leading supermarket’s in Australia. Woolworths (owned by Woolworths Group) shares are opened to the public and have over 350,000 Australian retail investors, while the major stakeholders who are interested in the company’s growth are owned by investment companies one of which is called BlackRock Funds Advisors who own nearly 4% in the supermarket (MarketScreener 2022). 

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With drastic changes within the world because of a worldwide pandemic, Woolworths has had to adjust to these changes internally and externally. Changes from new regulations from the Australian government where the supermarket needs to provide COVID-19 warning signs, adhere to mandatory rules such as social distancing, masks, sanitary stations, NSW app QR codes, as well as deal with changes to shortage of products from local and overseas suppliers. Woolworths was able to adjust to these rapid changes in the environment and because of the high demand for certain products such as sanitary products, RAT tests, meat, and any long-shelf-life products, the company has been able to grow its annual income each year vastly, outperforming their previous years.

External Analysis of Woolworths – Jason
There will always be external factors that can be predicted and unpredictable, companies can only do so much to adjust and adapt to these changes in order to survive and maintain a competitive advantage over their competitors. Woolworth’s case regarding the macro  environment has drastically changed these past 2 years because of the introduction of COVID-19. Economically, it can be said that Woolworths has gained a significant amount of revenue from products frequently being in high demand, one such example of this was the toilet paper shortage where the public was misinformed about toilet paper being only sourced from outside Australia, which resulted in a huge shortage of the toiletry, as well as the demand for sanitary and long-shelf-life and short-shelf-life products such as meat. In terms of technology, Woolworths has developed and implemented its first micro-automation technology in its Melbourne warehouse (Chanthadavong 2020). 

Woolworths has stated that this new technology will help automate online orders effectively, efficiently, and faster than any manual labor, sort, and then send to their supermarkets or to delivery trucks. Because of COVID-19, the government has required all businesses to have a mandatory stance with masks, COVID-19 awareness signs, and to implement the NSW app QR codes for tracking people who are infected by the virus. Demographically, Woolworths appears to all ages and genders, as it is a supermarket designed to be a shop that provides all the needs for living day-to-day. 

Woolworths still has the opportunity to grow its online order department by implementing utilising much more popular alternatives such as UberEats and Deliveroo. There are also threats such as the rising costs in raw materials and products as shortages affected by COVID-19 and Woolworths partnered suppliers demanding more for their supply, as well as the growing competition from Coles and other outside supermarket companies expanding to Australia. In terms of industry/market analysis, Woolworths has strongly gained favor with the public, the government, and was able to adjust to drastic external changes, continuing to keep that top position within their industry next to Coles and ALDI.

Internal Analysis of Woolworths
The largest Australian supermarket chain Woolworth has been serving for the last 60 years operating fresh, stored food while advancing in the long run’s revolutionised refrigeration, storage, and transportation.

Core competencies
The core competency of the Australian retail business Woolworth offers better supply chain approaches, networked distribution, reputable brand positioning, brand name, and sustainable business program. The business offers a greater range of refrigerated products and a wide array of services that aims to determine how the operations are managed while making better insight into how the other operations are carried out in the supermarket chain in Australia. Better retail cycle, innovation, quality, unique product offering better food and beauty products.

The company resources involve the groceries items that involve packaged goods, fruit, vegetables, meat and others. The other products that have been offered to the consumers are stationeries, baby supplies, household products, beauty products, magazines, and other health-related products in general.

Significant internal factors

The core strengths of Woolworth shed light on the storage commitment towards the sustainability practices that aim at bettering the storage capacity and the environment. The better amalgamation can be observed and found in the business practice of defining how the mortar driven sales channel and the online brick would have been the key part of defining how the process architectures are managed (Grimmer, 2019). This offers a better range of market share and huge supermarkets that can help enable the business of Woolworth to excel in offering better products and services based on the requirement of the customers. The other key strength of the business offers better insight and institution of being one of the leading oldest, and most popular retail chains in Australia. 

The company’s strong portfolio with better automation activities and better capital expenditure returns bettering the scale up or down as per the market demands. Reliable suppliers in the business have a strong and effective base that can help ensure how the other operations are managed with a better distribution network reaching the majority of the markets, and the better performance offers huge intervention in a strong dealer community. A skilled workforce with a better training process and distribution network has been the core part of becoming one of the key parts of bettering and streamlining the whole business in an ethical and determined manner. These are the key guide that foresees how the operations are managed with an automation process while better quality and consistency enabling the company to scale up the whole operation.

The business’s core weaknesses shed light on the huge gap between the range of products that offers better compatibility only with the recent business model. It limits the product segment expansion. High inventory with respect to the competitors leads to a huge rate of major missed opportunities and raises more investment capital, impacting long-term business growth.

Challenges in competing with the new market entrants while limiting the opportunity to manage and scale up the whole process of determining the business process of Woolworth to manage and streamline the niche products (Van Kampen & Kirkham, 2020). Unclear USP and product positioning have been the key issue that leads Woolworth to face huge attacks from the competitors.

Strategy Development 
The strategic focus on the business offers key principles that aim at bettering how the other practices are managed while making sure how the organisation would help in leading the retail sector. The key principles invest majorly in the offer, growth, and efficiency that are the fundamental approaches adhering to the operation of Woolworth. The offer in the key principles aims to enhance and improve the core and ethical offerings to the consumers ensuring that the customers of Woolworth put the company on their priority list (Pham et al., 2019). Growth in the business strategy has been approached to manage meeting the huge customer needs with innovation policy. The efficiency creates better customer value through organising the whole operations in execution of the Lean model in the Retail chain and better success involvements in the operational process.

Pricing and Range
The value position in the competitive level reduced the product policies worth $125 M that match the store pricing and online pricing that enhances how the customer services are lifted with adds 63,000 hours (Kasanagottu & Bhattacharya, 2018). The value strategy and new product segmentation strategy in the business aim at neutralising the other competitor’s sales impact by measuring targeted customers, lower pricing and the better products ranging with improved loyalty system and revised detailed strategy. The competition in terms of bettering the limited product discounts developing better proceed and higher quality Own brands closing the product range gaps.

New stores and refurbishments
The capital expenditure rebalancing has been a key strategy that has been adopted in the retail sector of Woolworth based on the need for the store refurbishments and the new stores (Elliott, 2018). The need to refurbish over 80 stores as per the foreseeable future while designing how the business meets the need of local customers in the long run. Another strategy that has been a key part of the business suggests prioritising the segments with greater consumer potential to grow the operation.

Delivering new products
The development of a new product division suggests that Woolworths FoodCo has a huge role in building new categorised products while improving the supply of processing facilities and fresh meats (Biyela, 2018). The strategic sourcing as per the industry partners. The aim of partnering with Western Sydney is to manage and offer better quality foods while offering ready to cook ultra-fresh to help cater meet the customers’ various and different needs in the long run.

Online strategy
The strategy of Woolworth is to harness the business strength to manage and cater to the higher operational success in order to manage how the other operations are managed in an effective yet systematic manner while investing majorly in the multi-channel strategy bettering the customer experience in the long run. Customer convenience is managed and met with collection points based on the drive-thru approaches.


Final Report, the team will build on their analysis and preliminary findings from Part 1, to formulate coherent recommendations and actions for the organization. The report will demonstrate the team’s application of relevant strategic management concepts, frameworks and theory.
A table of contents is required for the report and page numbers must be included. The text must be in 12-point with double line spacing. All the major concepts and ideas discussed in your report need to be defined and explained.

The report must be answered using the Effective Case Analysis Process as discussed in class and the report format will be as follows:
1) Write an introduction and include a brief discussion on the background of the organisation you selected, its history, strategicintent; a list of the major stakeholders and players; key recent changes in the industry/market of your chosen company; the current level of performance, their scorecard, actual and desired results.

2) Provide an external analysis macro-environmental analysis and industry/market analysis comment on the 3 significant external factors (threats or opportunities) impacting on the organisation’s future

3) Provide an internal analysis 
core competencies 
comment on the 3 significant internal factors (strengths or weaknesses) impacting on the organisation’s future

4) Strategy development
a. Identify and outline the company’s strategies

5) Strategy implementation
a. Identify and outline how well the company implements its strategies.

6) Recommendation
Consider 3 possible alternative strategies (including the status quo) Then in light of your previous analysis recommend the actions required for the firm.

7) Appendix

8) Reference

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